Foreign Minister of Foreign Minister Jaishankar | Photo credit: Ani

In one step that may mark a shift in the way in which India is approaching trade talks with the USA, the Foreign Minister of Foreign Minister, Jaishankar, who has firmly refuted in the past few weeks that India has approved Nile tariffs for US imports. Jaishankar’s explanation last week and firmly clarifies that trade talks are underway, and “nothing is decided until everything is decided”. India cleared the air and it was high time that this was the case. It coincides with the upcoming trade talks between the two countries this week. The Minister of Commerce and Industries, Piyush Goyal, is in the USA with his team of negotiators.

Since April 8, when President Trump put his mutual tariffs on 57 countries with a 90-day period for her, his government has had the pressure on India overboard. The gambit here is roughly easy – to force India to say goodbye to the 26 percent tariffs in these 90 days before July 8, which will probably occur afterwards. The same trick is also played with the rest of the world and forces some countries to face the talks with the USA. In India’s case, Trump and his colleagues cynically created a lot of confusion. In view of the zero tariff, India has retained a examined silence. The restraint may have been aimed at ensuring that the conversations continued in good faith. But the US actions have affected the process. Trump has proposed a “big beautiful calculation” that can “control” 5 percent of 32 billion US dollars NRI transfers. In view of the pressure, India should be careful without the United States being able to set the pace in the talks. A bad business in a hurry is far worse than nothing.

In the meantime, India has broadcast another sharp message that will pay attention to his interests. In a relapse against Trump 1.0, India proposed retaliation against US tariffs on steel and aluminum. However, it must also develop a plan in relation to other areas. At the beginning it should be clear that the interests of the United States go to India beyond trade per se to convince India to change its regulatory systems in terms of GM food, e-commerce, big tech, pharmaceutical and other high-tech sectors. It is also interested in access to India’s food (corn and soybeans) and to the milk sector as well as the sale of defense equipment and oil. India has enough in his toolkit to press a deal that does not harm its interests. A levy for e-commerce monopolies, an upper limit for license fees, the use of data localization rules and the mandatory licensing of patented drugs can be used to ward off a disadvantageous result.

There is the area to reduce tariffs in products that are rated with other FTAs ​​with zero. A deal that falls to 10 percent for the goods for the goods of India is possible without much victim. But Trump’s bluff and strikers have to be called, regardless of whether it is a trade or affairs of national security, even if we keep our connections to us on a uniform keel.

Published on May 18, 2025